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Why Is Oneok (OKE) Up 12.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have added about 12.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
ONEOK Q2 Earnings Top Estimates, Revenues Miss
ONEOK Inc. reported second-quarter 2024 operating earnings per share (EPS) of $1.33, which surpassed the Zacks Consensus Estimate of $1.18 by 12.7%. The bottom line also improved 27.9% from the year-ago quarter’s figure of $1.04 per share.
Total Revenues
Operating revenues totaled $4.89 billion, which missed the Zacks Consensus Estimate of $5.52 billion by 11.3%. However, the top line improved 31.1% from $3.73 billion in the prior-year quarter.
Highlights of the Release
Adjusted EBITDA came in at $1.62 billion, up 65.5% year over year.
Operating income totaled $1.23 billion, up 66.7% from the prior-year quarter’s level of $0.74 billion.
ONEOK incurred interest expenses of $298 million, up 65.5% from $180 million recorded in the year-ago period.
Total natural gas processed was 3,102 billion British thermal units per day (BBtu/d), up 6.2% year over year.
The company reported natural gas transportation capacity contracted of 7,991 million British thermal units per hour per day (MDth/d), which increased 4.4% year over year.
Financial Highlights
As of Jun 30, 2024, cash and cash equivalents amounted to $36 million compared with $338 million as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt (excluding current maturities) totaled $20.3 billion compared with $21.2 billion as of Dec 31, 2023.
Cash provided by operating activities for the first six months of 2024 amounted to $2.03 billion compared with $1.99 billion in the corresponding period of 2023.
2024 Guidance
ONEOK continues to expect its consolidated 2024 net income in the band of $2.73-$3.03 billion. It expects adjusted EBITDA to be in the range of $6.03-$ 6.33 billion.
Interest expense, net of capitalized interest, is expected to be in the range of $1.195-$1.165 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Oneok has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Oneok is part of the Zacks Oil and Gas - Production Pipeline - MLB industry. Over the past month, Enterprise Products Partners (EPD - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended June 2024 more than a month ago.
Enterprise Products reported revenues of $13.48 billion in the last reported quarter, representing a year-over-year change of +26.6%. EPS of $0.64 for the same period compares with $0.57 a year ago.
Enterprise Products is expected to post earnings of $0.69 per share for the current quarter, representing a year-over-year change of +15%. Over the last 30 days, the Zacks Consensus Estimate has changed +2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Enterprise Products. Also, the stock has a VGM Score of B.
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Why Is Oneok (OKE) Up 12.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have added about 12.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
ONEOK Q2 Earnings Top Estimates, Revenues Miss
ONEOK Inc. reported second-quarter 2024 operating earnings per share (EPS) of $1.33, which surpassed the Zacks Consensus Estimate of $1.18 by 12.7%. The bottom line also improved 27.9% from the year-ago quarter’s figure of $1.04 per share.
Total Revenues
Operating revenues totaled $4.89 billion, which missed the Zacks Consensus Estimate of $5.52 billion by 11.3%. However, the top line improved 31.1% from $3.73 billion in the prior-year quarter.
Highlights of the Release
Adjusted EBITDA came in at $1.62 billion, up 65.5% year over year.
Operating income totaled $1.23 billion, up 66.7% from the prior-year quarter’s level of $0.74 billion.
ONEOK incurred interest expenses of $298 million, up 65.5% from $180 million recorded in the year-ago period.
Total natural gas processed was 3,102 billion British thermal units per day (BBtu/d), up 6.2% year over year.
The company reported natural gas transportation capacity contracted of 7,991 million British thermal units per hour per day (MDth/d), which increased 4.4% year over year.
Financial Highlights
As of Jun 30, 2024, cash and cash equivalents amounted to $36 million compared with $338 million as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt (excluding current maturities) totaled $20.3 billion compared with $21.2 billion as of Dec 31, 2023.
Cash provided by operating activities for the first six months of 2024 amounted to $2.03 billion compared with $1.99 billion in the corresponding period of 2023.
2024 Guidance
ONEOK continues to expect its consolidated 2024 net income in the band of $2.73-$3.03 billion. It expects adjusted EBITDA to be in the range of $6.03-$ 6.33 billion.
Interest expense, net of capitalized interest, is expected to be in the range of $1.195-$1.165 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Oneok has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Oneok is part of the Zacks Oil and Gas - Production Pipeline - MLB industry. Over the past month, Enterprise Products Partners (EPD - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended June 2024 more than a month ago.
Enterprise Products reported revenues of $13.48 billion in the last reported quarter, representing a year-over-year change of +26.6%. EPS of $0.64 for the same period compares with $0.57 a year ago.
Enterprise Products is expected to post earnings of $0.69 per share for the current quarter, representing a year-over-year change of +15%. Over the last 30 days, the Zacks Consensus Estimate has changed +2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Enterprise Products. Also, the stock has a VGM Score of B.